INDUSTRY SEGMENT INFORMATION (Note)

6 Months Ended

Jun. 30, 2020

Segment Reporting Disclosure [Text Block]

International Paper’s business segments, Industrial Packaging, Global Cellulose Fibers and Printing Papers, are consistent with the internal structure used to manage these businesses. All segments are differentiated on a common product, common customer basis consistent with the business segmentation generally used in the Forest Products industry.

Business segment operating profits are used by International Paper's management to measure the earnings performance of its businesses. Management believes that this measure allows a better understanding of trends in costs, operating efficiencies, prices and volumes. Business segment operating profits are defined as earnings (loss) before income taxes and equity earnings, but including the impact of noncontrolling interests, excluding interest expense, net, corporate items, net, corporate net special items, business net special items and non-operating pension expense. In the fourth quarter of 2019, the Company changed its measure of business segment operating profits to exclude items considered by management to be unusual (business net special items) from the normal operations of the business segment. As a result, all prior periods have been restated to reflect the current measure.

Net sales by business segment for the three months and six months ended June 30, 2020 and 2019 were as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
In millions	2020		2019		2020		2019
Industrial Packaging	$	3,633	$	3,864	$	7,452	$	7,696
Global Cellulose Fibers	605		661		1,173		1,350
Printing Papers	583		1,088		1,491		2,153
Corporate and Intersegment Sales	45		54		102		111
Net Sales	$	4,866	$	5,667	$	10,218	$	11,310

Operating profit (loss) by business segment for the three months and six months ended June 30, 2020 and 2019 were as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
In millions	2020		2019		2020		2019
Industrial Packaging	$	449	$	515	$	919	$	936
Global Cellulose Fibers	(10)		—		(64)		35
Printing Papers	(11)		114		85		258
Business Segment Operating Profits	$	428	$	629	$	940	$	1,229

Earnings (loss) before income taxes and equity earnings	$	261	$	334	$	245	$	752
Interest expense, net	116		122		233		255
Noncontrolling interests adjustment	—		5		—		2
Corporate expenses, net	(3)		3		29		24
Corporate net special items	54		—		87		—
Business net special items	14		157		366		178
Non-operating pension expense (income)	(14)		8		(20)		18
Business Segment Operating Profits	$	428	$	629	$	940	$	1,229